Core Insights - The main barrier for large financial institutions in adopting decentralized finance (DeFi) is trust rather than technology [1] - Institutions require clear legal definitions and governance structures to ensure the safety and reliability of tokenized assets [2][5] - The future of DeFi may integrate blockchain technology's transparency with institutional frameworks for legal certainty [6] Group 1: Institutional Trust - "Institutional grade" encompasses quality of assets, legal structure, governance, risk management, and disclosure, which are still developing in crypto markets [2] - Without institutional-grade safeguards, large capital pools will not participate in DeFi [3] - Trust in this context is derived from governance frameworks and legal agreements rather than solely from blockchain technology [5] Group 2: Technology vs. Trust - The concept of "trustless" systems in early blockchain ideals contrasts with the need for institutional trust [3][4] - Blockchain technology allows for immutable and verifiable transactions between parties who do not know each other [4] - Institutional investors require assurance that tokenized assets are securely linked to their underlying assets [5]